bzorc Posted February 26, 2001 Report Share Posted February 26, 2001 Just for my clarification: I have a client (a sole-proprietor, with no employees)whose Schedule C income is $218,000. What is the maximum SEP contribution that can be made for 2000? Is it $25,500 (15% of 170,000) or $22,174 (13.0435% of 170,000)? Thanks for any replies. Link to comment Share on other sites More sharing options...
Michael Devault Posted February 26, 2001 Report Share Posted February 26, 2001 I vote for $22,174. Net earnings from self employment excludes a deduction for the self employed's SEP contribution. That's why the normal 15% contribution rate is reduced to 13.0435%. Link to comment Share on other sites More sharing options...
Guest mcdonnell Posted March 2, 2001 Report Share Posted March 2, 2001 I vote for $25,500. See Worksheet Example on Page 52 of Publication 590 and Worksheet Example on Page 18 of Publication 560. Link to comment Share on other sites More sharing options...
Michael Devault Posted March 5, 2001 Report Share Posted March 5, 2001 Since this isn't a presidential election, I want to change my vote to $25,500 after reviewing the worksheet to which mcdonnell refers. Link to comment Share on other sites More sharing options...
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